Information and Control for Resource Management in a Growing Market

by Carl Verner Swanson

Excerpt

In a growing market, management tries to match resources with de mand. Unfortunately, demand cannot be measured. It can only be esti mated from other variables. Typically, management estimates demand from the order rate, unfilled order backlog, and inventory. This information flow couples the market and resources in a feedback structure which causes the paradox of slow growth while management apparently matches resources to demand.